INVESTMENT

More than half of Oscar-winning Best Pictures over the last 30 years have been independent films. The recent success of independent films, such as Nomadland, Parasite, Green Book, The Shape of Water, Moonlight, Spotlight, Birdman, The Help, The King's Speech, The Kids Are All Right, The Hurt Locker, Slumdog Millionaire, and others has ensured that independent filmmaking will continue its upward trend.

Logline

Set across Idaho in 2006, Mirage tells the story of Dean Stanton, a young news videographer with a panache for telling local stories. When a reclusive billionaire makes the largest land grab in state history — The Size of New York City — Dean sets out for answers. Rapid, unchecked growth spreads across the state, leading him to the realization; if you no longer recognize your surroundings, can you still call it home?

Similar Movies

Chinatown, Fargo, Brick, Hell or High Water 

Our Audience

• We believe our R-rated Neo-Western/Mystery/Drama will target an adult audience, ages 25–49.

• According to the MPA, the 25–39 year age group (10.7 million) has the most frequent moviegoers, followed by the 40-49 year age group (6.3 million).

• Idaho stories and the northwest at large have not been represented in the entertainment industry. The last film made in Idaho, about Idaho, grossed 40 million domestically (Napoleon Dynamite). A large portion of those box office receipts come from within the Gem State.

Investor Projections

Mirage Film Production, LLC seeks capitalization of $2,000,000 to cover film production, budget, and distribution. All development and production data start from the date of capitalization with funds in the bank. Whereas, revenues are projected on a conservative basis, production costs are considered to be on the high side to avoid any possibility of financial shortfall. The projections are also based on the history of other films as well as current trends in the industry.

Medium Scenario Financial Projections

Total Film Revenue                         $3.75M

Investor Participation (10%)       $200K

Investor Recoupment. $350K

Investor ROI                               175%

Investor Profit $150K

The Budget of MIRAGE is $2,000,000; to be raised through the sale of equity shares in the film’s LLC. A total of 200 shares are available, priced at $10,000 per share. Upon completion, the producers will self distribute via domestic and foreign theatrical, cable, and network TV, DVD, video on demand, streaming outlets such as Amazon and Netflix, and other miscellaneous small markets (pay-to-play film festivals, independent art houses, etc).

Domestically, there are over 117 movie theaters across Idaho and our bordering states, over half of those theaters are independently owned and operated. We believe a “four-walling” self-distribution model & partnerships with these theaters, along with a months-long roadshow film tour will yield the greatest possible returns for our investors. All revenue (less operating/delivery expenses) will be distributed to the stakeholders as follows: 

PHASE ONE: ($0-$3,500,000)

100% of initial profits up to 175% of the final budget return to the investors–distributed based on their share of ownership. When the investors have received a cumulative 175% of their original investment, then the profit distribution reaches the second phase. Note: Most revenue for a film tends to be earned in the first 12-24 months following the distribution of the film. 

PHASE TWO: ($3,500,000 - $3,750,000)

All “deferments” will be paid. This “deferred compensation” is given to actors, key crew, post production facilities, etc. to entice top caliber talent to work below their normal rate–keeping up-front costs low. Deferments will be capped at $250,000 (and avoided if possible via full funding). 

PHASE THREE: ($3,750,000 +)

Profits beyond this point will be split 50/50 between investors and the production company–and are distributed based on the individual’s share of ownership. 

An investment of $200,000 (10% ownership) would receive 5% of all profits earned beyond $3,750,000. 

The other 50 % belonging to the production company will be allocated by the producers to actors and other key contributors–as well as to be used to progress future productions and assist in the further marketing of MIRAGE. 

Breakdown example

An investment of $200,000 in MIRAGE results in 10% ownership. In Phase One the investor receives 10% of the profit up to 175% of the original investment; $350,000. After deferments are paid, they will own 5% of all profits earned over the entire profit-earning life of the film. If MIRAGE earns $5,500,000–the initial investment of $200,000 would yield a return of $437,500. 

The Company proposes to payback the film's investors (limited partners) in the following way: 

(i) From the Producer's Gross Income, the Company will cover any and all outstanding production expenses not covered by the production budget, for example, deferred pay of talent salaries or other such costs. 

(ii) After the deduction of any deferred fees or outstanding expenses, the Producer's Gross Income will go directly to the limited partners proportionate to (pro rata) each individual investment. Moneys will be disbursed to each limited partner at the same time as all other limited partners. 

(iii) Once each limited partner has recouped his/her initial investment, then any additional moneys earned will be divided between the producers and the limited partners on a fifty/fifty basis. 

A typical cycle for a distributor is to make payments to a producer initially on a quarterly basis, but thereafter on a semiannual basis. Generally, the distribution company is responsible for providing statements and paying any sums due to the production company within sixty days of the close of the quarter. The Company will provide the limited partners with accounting statements and payments due and owing, if any, within sixty days of the receipt of those statements and moneys from the distributor.